This is a question we get asked a lot, and it’s one of our most viewed frequently asked questions. Why do you need a credit card when hiring a car? Here’s the answer.
You have to leave a security deposit
In order to prevent theft and being out of pocket for damages, car rental companies often require a security deposit for their vehicles. This is purely to ensure the safe return of the vehicle and to cover any damages while on rental. If you damage the car, the costs will be taken from the security deposit.
Credit card vs debit card
Most rental providers will require a credit card over a debit. This isn’t to be difficult, it’s the technology behind credit cards that means an amount can be held rather than taken. This ‘ringfencing’ protects you also, as no amount is ever taken from the card. If you were to pay a deposit on a debit card, the amount would be debited and then refunded.
Depending on the provider, deposits will either be ‘ringfenced’ or debited. We recommend checking the terms of your credit card if booking with a debited deposit as foreign transaction fees can be hefty with some credit card companies.
Why do I need a credit card with no deposit?
Some of the rental providers we work with offer a no deposit option but still require a credit card. This is again to ensure the safe return of the vehicle. Any damage charges will be deducted from the card.
Can I hire a car without a credit card?
If you don’t have a credit card but need to hire a car, please get in touch. Our team can help direct you to a provider that only requires a debit card for security.
We hope this has helped clear up some confusion and some of your queries. If you’ve got anything you want us to explain further, let us know in the comments and we’ll answer them in a future bitesize article!
